Synergy: Router Market Grows

PHOENIX -- In Q2 2003 the High End Router market grew 5.8 percent, the highest growth seen in over two years. Synergy believes this new found growth is being fueled by increased service provider deployments at the Edge. As the Edge grows, increased demands are being placed on the Core.

Service Provider Core and Service Provider Edge segments provided the most pronounced sequential growth, posting 7.2 percent and 6.4 percent growth, respectively. The traditional IP Edge router segment grew 2%, which was this segment’s second consecutive quarter of growth. Synergy forecasts continued growth for Service Provider Edge Routers for the remainder of 2003.

“In the Service Provider Edge Router segment, Nortel, Cosine and Juniper increased market share,” said Susana Vidal, Industry Analyst at Synergy Research Group.” The drivers for growth in the Edge segment where more IP Services implementations like IP-VPNs, and also increased Broadband deployments, especially in Asia and Europe.“

Table 1: Service Provider Core Revenue Market Share

Synergy Research Group Inc.